Customer-Oriented Business Operation Policy
ES-CON ASSET MANAGEMENT Ltd. (hereinafter referred to as the Company) has established the following policy in response to the Principles for Customer-Oriented Business Operation published by the Financial Services Agency on March 30, 2017. Based on this policy, we will aim to contribute to the development of the economy and society through sound business operations, broadly establish trust from society, and provide high-quality services as a professional group.
1. Formulation and announcement of policy for customer-oriented business operations, etc.
The Company formulates and announces a clear policy for achieving customer-oriented business operations, and regularly checks the status of efforts related to this policy.
2. Pursuing the best interests of our customers
The Company maintains a high level of expertise and professional ethics and conducts business in good faith and fairness to its customers, striving to serve their best interests. In addition, the Company endeavors to establish such business operations as an integral part of its corporate culture.
The Company endeavors to secure stable earnings for its investment corporation and maximize unitholder’s value through enhancing the price stability and liquidity of investment units by increasing the scale of assets, growing distributions, and increasing market capitalization.
With regard to the private placement fund business, we pursue the best interests of our customers by understanding their individual needs by engaging in discussions with them at the fund formation stage.
・ Growth strategy
・ Financial highlights
3. Proper management of conflicts of interest
In regard to conflicts of interests in dealings with stakeholders, the Company accurately understands when there is such a possibility, and in such a case, the Company appropriately manages such conflicts of interests in accordance with laws, regulations, and internal rules.
Although ES-CON JAPAN's sponsor pipelines and the group's extensive know-how in management operations are utilized to the greatest possible extent, there is concern that conflicts of interest could arise between the client, the Company, and interested parties, etc. Therefore, we previously prevents transactions that could potentially cause conflicts of interests in accordance with laws, regulations, and internal rules, including the Rules on Transactions With Interested Parties.
Specific policies and operational systems are set forth in an attachment.
・ Reports related to the management system, etc.*
*Translation for reference purposes only. ESCON REIT has not published an English version of reports related to the management system, etc.
4. Clarification of fees, etc.
We provide information that enables customers to understand the details of the fees they pay to the Company, including the types of services they are paying for.
Regarding fees, etc. received by the Company, in addition to asset management fees linked to total assets, we have adopted a management fee structure linked to income before taxes. In this way, the management fee system has been devised to strengthen the link between the profits of the unitholders and those of the Company.
With regard to the private placement fund business, we endeavor to provide information to our clients by clearly stating the various fees and compensation in the relevant documents.
・ Investment corporation agreement*
*Translation for reference purposes only. ESCON REIT has not published an English version of investment corporation agreement.
5. Provision of important information in a way that is easy to understand
The Company provides accurate and easy-to-understand information to promote its customers' understanding.
In addition to disclosing information in accordance with laws and regulations in terms of transparency, the Company discloses all information that could potentially have a significant impact on customers' investment decisions in a timely and easy-to-understand manner, including the information set forth in the Securities Listing Regulations Pertaining to Real Estate Investment Trust Securities.
With regard to the private placement fund business, we endeavor to provide information that may impact our customers' investment decisions in a timely and easy-to-understand manner.
・ Press releases
6. Providing services suitable for our customers
The Company endeavors to understand the needs of its customers, and manages assets with those needs in mind.
In managing the assets of the investment corporation, the Company aims to secure long-term stable earnings and maximize unitholder value by understanding the needs, etc. of its unitholders through IR activities.
With regard to the private placement fund business, we endeavor to provide services that are appropriate to our customers' asset situation and transaction objectives by communicating with them.
・ IR Library
・ Financial results explanation video*
*Translation for reference purposes only. ESCON REIT has not prepared an English version of its video.
7. Framework for appropriate employee incentives, etc.
The Company endeavors to carry out appropriate business operations, such as actions to pursue the best interests of its customers, and compliance activities to ensure the proper management of conflicts of interest. In addition, we establish training and other appropriate incentive frameworks and governance systems for all officers and employees.
The Company understands the importance of its asset management business of the investment corporation as the act of managing the funds of ESCON REIT's unitholders. The Company positions compliance as the most important management issue, and requires that its executives and employees recognize their responsibilities as investment management experts and comply with their duty of loyalty and duty of due care of a prudent manager at all times. As part of that process, we formulate an annual compliance program and endeavor to practice legal compliance.
In addition, we introduce an Investment Unit Ownership Program system to promote mutual interests between unitholders, the officers and employees of the Company, and sponsors, with the aim of improving the investment corporation's unitholder value.
・ Status of the acquisition of qualifications by officers and employees